Hubei Guochuang High-Tech Materials Co., Ltd. To all shareholders of Hubei Guochuang High-Tech Materials Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Norms System"), and based on the company's internal control system and evaluation methods, we have evaluated the effectiveness of the company's internal controls as of December 31, 2025 (the "Internal Control Evaluation Base Date").
I. Important Statement
In accordance with the Enterprise Internal Control Norms System, it is the responsibility of the company's board of directors to establish, improve, and effectively implement internal controls, evaluate their effectiveness, and disclose them truthfully in the internal control evaluation report. The supervisory board and the board's audit committee supervise the board of directors in establishing and implementing internal controls. The management is responsible for organizing and leading the daily operations of the company's internal controls. The company's board of directors, supervisors, and senior management guarantee that this report contains no false records, misleading statements, or significant omissions, and they bear individual and joint legal responsibility for the truthfulness, accuracy, and completeness of the report's content.
The objective of the company's internal controls is to reasonably ensure that business operations are legal and compliant, assets are secure, financial reports and related information are true and complete, and to improve operational efficiency and effectiveness, thereby promoting the achievement of development strategies. Due to the inherent limitations of internal controls, they can only provide reasonable assurance for achieving these objectives. Furthermore, changes in circumstances may render internal controls inadequate, or reduce the degree of compliance with control policies and procedures, thus carrying a certain risk in inferring the future effectiveness of internal controls based on the results of the internal control evaluation.